Efficient Electrification at Epri August 2018 Newsletter

EFFICIENT ELECTRIFICATION AT EPRI AUGUST 2018 NEWSLETTER

Efficient electrification is about innovation. It’s about creative solutions that benefit a broad range of stakeholders–utility customers, utilities, private industry, and society. This issue of Efficient Electrification highlights a few of the many innovative solutions that industry leaders are proposing: • To help customers learn about the benefits of using electricity and make more informed energy choices, American Electric Power (AEP) recently launched its Energy Conversion Hub. • To facilitate coordinated planning among energy and water utilities, the Water Resource Foundation is pioneering an innovative approach using a competitive tournament. • EPRI is demonstrating an innovative, low-cost solution to end-use monitoring and control called the energy management circuit breaker. • In its Electrification Futures Study, the National Renewable Energy Laboratory (NREL) examines how potential electrification could transform the U.S. energy system. Learn about the key findings of the most recent report. • Global experts from utilities, private industry, regulators, EPRI, and others will cover many “big ideas” planned for the Electrification 2018 Conference plenary sessions. You will hear much more about innovative solutions in the many keynote talks, technical sessions, and exhibits at the upcoming Electrification 2018 International Conference & Exposition, August 20–23, 2018, in Long Beach, California. Remember to check out the list of recent news, events, and EPRI resources at the end of Efficient Electrification–a compilation of electrification- related information assembled in one place. Thank you for reading, and we hope to see you in Long Beach.

Arshad Mansoor Rob Chapman

Senior Vice President, Vice President, Research and Development Energy and Environment

TABLE OF CONTENTS

Electrification 2018 International Conference and Exposition EPRI is bringing together customers, manufacturers, utilities, regulators and policymakers at ELECTRIFICATION 2018… the first international conference and exposition exploring efficient electrification around the world. ELECTRIFICATION IN ACTION

AEP Releases its Energy Conversion Hub

American Electric Power (AEP) recently launched its Energy Conversion Hub to help customers learn the benefits of using electricity and make informed energy choices. The Hub is a key part of AEP’s new Energy Conversion program for commercial and industrial customers. It’s also an important step the Columbus, Ohio-based company is taking to lead and innovate in the energy industry. “We want the Energy Conversion Hub to be a one-stop shop for customers to understand and learn the many uses and success stories associated with choosing electricity,” says Teri Kerrigan, Director of Strategic Marketing. “AEP has a great opportunity to lead the energy conversion conversation that so many of our customers are having,” she said. AEP’s Energy Conversion Hub: • Provides AEP customers easy access to a portal of useful, fact-based information. • Enables AEP to play a trusted role in industry news in a searchable and public space. AEP initially chose four solutions with the potential to provide customers the largest cost savings: • Electric forklifts • Electric pipeline compression • Induction heating for surface treatment • Infrared curing and drying For each solution, the Hub offers information about technical and cost-savings benefits, including: • A calculator to help companies predict savings by converting to electricity • Success stories from AEP’s service territory • Blog posts about the four key solutions mentioned above

Images used with the permission of American Electric Power ELECTRIFICATION IN ACTION

AEP is evaluating more technologies and market opportunities. The company plans to add these to the Hub in the future. For American Electric Power at Electrification 2018 more information, contact Teri Kerrigan. In addition to being a Platinum-level sponsor and exhibitor at the upcoming Electrification 2018 conference, AEP executives are contributing to a number of conference technical sessions in Long Beach: • Jeff Lehman, AEP Customer Energy Solutions Lead, will speak at the pre-conference electric transportation workshop on Monday, August 20. • Bud Clark, AEP National Account Executive, will give a talk on industrial and process heating on Tuesday, August 21. • Mark McCullough, AEP Executive Vice President of Generation, will discuss industrial game changers on Teri Kerrigan is the Director of Strategic Marketing at American Wednesday, August 22. Electric Power, where she leads strategic marketing programs • Bruce Evans, AEP Senior Vice President and Chief to deliver new and innovative energy solutions to customers. Customer Officer, will share insights on “Breaking Kerrigan joined AEP in April 2017. Prior to joining AEP, she Through with the Customer” on Wednesday, August held marketing and management positions at AAA Auto Club 22. South, AAA Ohio, and AAA Club Partners. She earned a • Julie Sloat, President and Chief Operating Officer Bachelor of Science degree in Business Administration from of AEP Ohio, will speak on Thursday, August 23 the University of Dayton in Dayton, Ohio. She is a member of about “Electrification: The Key to Unlocking Smart the American Marketing Association, National Association of Communities.” Advertisers, and the Women’s International Network of Utility Professionals. SCIENCE AND TECHNOLOGY SPOTLIGHT

Optimizing the Energy-Water Nexus Energy development can require significant amounts of water. The concept for the tournament was based on the Invitational Development applications include thermoelectric cooling, Drought Tournament developed at the Science and Technology hydropower, oil and natural gas extraction, coal production/ Branch of Agriculture and Agri-Food Canada. mining, biomass production, fuel refining, and more. Wider use of the tournament approach could create Conversely, water applications can require significant amounts opportunities for focusing infrastructure design and investment of energy. These applications include public water treatment toward solutions that simultaneously address a range of and distribution, wastewater treatment, and conveyance and emerging challenges, including: pumping of water for irrigation. • Uncertain water futures This integrated nature of water and energy uses and networks • Rising energy costs is commonly referred to as the energy-water nexus. In recent • The need for alternative water and energy supplies years, the Water Research Foundation (WRF), UC Davis, EPRI, • The need to simultaneously adapt to and mitigate the and other organizations examined the topic in depth. One effects of climate variability focus of this work is the integration of water utility and electric UC Davis: Multi-Sector Water, Water/Energy Conservation utility planning to make the best use of both resources. But how A second project demonstrated that energy saved through can electric and water utilities coordinate efforts to improve drought (water) conservation measures can be substantial and management of these finite resources? cost effective. During recent droughts in California, commercial and residential water customers achieved significant reductions in water use through various incentive and conservation programs. UC Davis researchers used models and other estimates of imbedded energy in water systems, which were then used to estimate the energy conservation associated with that water conservation. The UC Davis research showed that water conservation during the California drought achieved 11% more energy conservation than all the energy efficiency programs that investor-owned, California electric utilities Competitive Tournament for Integrated Water/Electric Utility implemented, and at levelized costs that were among the

Planning lowest. This energy conservation also resulted in lower CO2 The WRF pioneered an innovative approach based on a and criteria pollutant emissions. competitive tournament to foster coordinated planning. The idea is to gather representatives from water and electric utilities and other stakeholders in the same room, and work through hypothetical integrated planning scenarios. In October 2014, WRF demonstrated this approach by convening the Joint Water and Electric Utility Planning Tournament in Denver, Colorado. Teams developed realistic integrated plans and prioritized options for water and electric utilities for given scenarios. The teams then scored each other’s plans on their ability to meet scenario goals. The team with the highest score won. WRF conducted the tournament as part of its project 4469 on Water and Electric Utility Integrated Planning, led by Steve Conrad of Simon Fraser University and the University of British Columbia and Steven Kenway of the University of Queensland. Images used with the permission of University Of California—Davis SCIENCE AND TECHNOLOGY SPOTLIGHT

Next Steps EPRI, WRF, and several collaborating organizations are exploring a series of energy-water integrated planning tournaments that will support multi-disciplinary teams from utilities, regulators, policymakers, and other stakeholders in a competition for the best integrated regional strategy. The teams will: • Analyze, present, and score each strategy proposal to identify the leading strategies for each region. • Conduct economic analyses to examine the costs of implementing water and energy management projects and the potential benefits to utilities, communities, and ecosystems. • Identify and address regulatory barriers to implementation. • Assess and allocate stakeholder benefits to encourage implementation. These tournaments can encourage innovation and capture creative solutions to match the variety of geographic regions, landscapes, ecosystems, and watershed characteristics. EPRI is soliciting interest from all parties to launch this regional tournament series and fund additional research of the winning strategies. For more information, contact EPRI Senior Program Manager Kent Zammit, 805.481.7349. FEATURE

Plenary Sessions Finalized for Electrification 2018 Conference

ELECTRIFICATION 2018 INTERNATIONAL CONFERENCE & EXPOSITION AUGUST 20-23, 2018 • LONG BEACH, CALIFORNIA

www.electrification2018.com

In addition to informative breakout sessions, a diverse gathering Kit Kennedy, Senior Director, Climate and Clean of exhibitors, and unique networking opportunities, EPRI’s Energy Program, Natural Resources Defense Council Electrification 2018 International Conference & Exposition (NRDC) will offer three plenary sessions, providing attendees the Gil C. Quiniones, President and CEO of the New opportunity to hear from executives from several industries as York Power Authority well as regulatory and non-profit experts. Afternoon Plenary–Technology and Electrification (Tuesday, Opening Plenary–Electrification: A Big Idea (Tuesday, August 21) August 21) • EPRI Senior Vice President of Research and Development • Mike Howard, President and CEO of EPRI, will welcome Arshad Mansoor will discuss the role of technology and conference attendees. the customer in advancing new electric technologies. • Keynote speaker Pedro J. Pizarro, President and CEO of • A conversation on electrifying transportation will feature: Edison International, will share his vision on electrification Vincent Halma, President and CEO of KION North and how these perspectives can be translated globally. America, a supplier of electric lift trucks and other • Keynote speaker Ira Ehrenpreis, Founder and Managing material handling equipment, who will explain Partner of DBL Partners, will provide insights on the role of KION’s initiative to “electrify everything.” innovation and the impact that technology entrepreneurship Ryan Popple, President and CEO of electric vehicle can have on electrification. bus manufacturer Proterra, who will share the • A panel of utility executives will share what inspires them company’s experience bringing these vehicles to about the potential for an electrified future: market. Terry Bassham, President and CEO of Evergy, Inc. Mike Whitlatch, Vice President of Global Energy and (formerly Chairman and CEO of Great Plains Energy Procurement at UPS, who will discuss UPS’s plans to and Kansas City Power and Light) electrify its fleet and operations. Paula Gold-Williams, President and CEO of CPS • Keynote speaker Mike Ableson, Vice President of Global Energy Strategy at General Motors, will provide insights on issues of transportation electrification, automation, and mobility- as-a-service. FEATURE

Closing Plenary–The Electrified Economy (Wednesday, August 22) • EPRI Senior Vice President of Global and External Relations Anda Ray will open the session. • A panel discussion on the global perspective for moving electrification forward will feature: Nancy Lange, Chair of the Minnesota Public Utilities Commission, who will discuss the future of electrification in the state of Minnesota and across the United States and the dynamics impacting the discussion at state utility commissions. Garrett Blaney, Chairman of the European Board of Regulators, who will describe the European view on the role of electrification and the role technology and connectivity play in the future energy system. • Keynote speaker, Stuart Mason, Senior Vice President of Industrial Facilities at AECOM, will discuss the role of energy and automation in designing and building customer industrial facilities for different industrial sectors worldwide. • Closing keynote speaker Tom Fanning, Chairman, President, and CEO of Southern Company, will discuss the company’s electrification programs that provide enhanced value to its customers. For information on exhibiting or sponsoring, contact [email protected]. Register, view the agenda, see a list of sponsors, view a sponsorship brochure, and more. ELECTRIFICATION INNOVATION

Energy Management Circuit Breaker

The EMCB is one example of a smart breaker. EPRI is currently evaluating two versions of the device: • One version integrates metering, remote on/off control, communications, and simple power quality monitoring capability in a standard form factor circuit breaker. • An electric vehicle (EV) version adds the ability to act as an EV charger with power management capability. Key Benefits The EMCB is used to replace a conventional circuit breaker at a customer location. For direct control of major loads, it offers low cost (approximately $100-$200 per control point) and uncomplicated installation with no disruption to existing wiring and loads. For EVs, it offers a simple, low-cost charging solution with full remote control capabilities. The device provides circuit level submetering in a residence or business with meter-grade accuracy (i.e., compliant with As residential and commercial customers continue to install ANSI C12.20). It is directly applicable to monitoring solar electric heat pumps, heat pump water heaters, all-electric photovoltaics and other distributed generation devices, cooking, and other electric appliances, utilities and other enabling low-cost, direct, accurate, bi-directional metering. stakeholders seek a low cost means to monitor these new end- The EMCB can also function as an effective data-collection use loads. EPRI is evaluating such an energy management device for utilities’ load research and energy efficiency device that has the potential to offer low-cost installation, programs. is applicable to a broad set of end uses, and is useful to Key Achievements consumers, utilities, and aggregators. EPRI calls this device an energy management circuit breaker (EMCB). To date, the EPRI project yielded the following results: Background • Developed a catalog of potential use cases for the EMCB The load center, or service panel, is the heart of a residence’s • Deployed about 260 EMCB devices across 12 utilities or facility’s electrical system. Its key function is to house the in 19 states; data collection from the earliest installations circuit breakers that the electric code requires. These protect began in November 2017 each electrical circuit, and the end-use devices connected to • Demonstrated the viability of the technology, capturing it, from damage caused by overcurrent, overload, or short data from dozens of end-use devices over the course of circuit. As such, all end-use loads are downstream of a circuit the project breaker, with major loads (such as HVAC systems, water • Set the stage for utility applications of the device heaters, and pool pumps) typically on dedicated circuits. Miniaturization of communications and energy metering To learn more, contact EPRI Technical Executive John Halliwell, technologies has enabled development of “smart” breakers. 865.218.8149. These devices embed communications, metering, and on-off control in a form factor compatible with standard load centers. This technology advancement brings the potential for a lower cost solution to end-use monitoring and control. ELECTRIFICATION IN THE NEWS

NREL’s Electrification Futures Study: New Report on Demand-Side Impacts

In its Electrification Futures Study (EFS), the U.S. Department of “By exploring the impact of electrification on how much, when, Energy’s National Renewable Energy Laboratory (NREL) takes and where electricity is used, the demand-side scenarios a close look at how potential electrification could transform presented here lay the foundation for future reports on the U.S. the U.S. energy system. The scope of this multi-year research power system evolution and operations, as well as key costs collaboration includes electrification impacts across residential and impacts of electrification,” said NREL’s Trieu Mai, principal and commercial buildings, industry, and transportation. The investigator for the EFS. “Our results can also be used by EFS examines five areas: other researchers looking to explore what electrification and • End-use electric technologies–current cost and performance demand growth could mean for the U.S. economy.” and how they might advance over time Key findings from this new report include: • National and regional impacts of increased electricity • Electrification results in significant growth in U.S. electricity demand and consumption consumption–20% and 38% above the reference in the • Transforming the U.S. grid to accommodate increased medium and high adoption scenarios by 2050. demand from electrification • The most significant contributions to electrification are in • Demand-side flexibility to support grid reliability the transportation sector. • Potential costs, benefits, and impacts of widespread • Adoption of heat pumps could significantly alter customer electrification load shapes. • Growth in the electricity share of total final energy reduces on-site fossil fuel use; future EFS reports will examine use of fossil fuels for power generation or exports. “Looking forward, further research is needed to more comprehensively assess the drivers and impacts of electrification, as well as the role and value of demand- side flexibility,” Mai said. “Although we extensively and qualitatively discuss the potential drivers and barriers behind electric technology adoption in the report, much more work is needed to quantitatively understand these factors.”

The first report in the EFS series (“End-Use Electric Technology Cost and Performance Projections through 2050”) lays the groundwork for future reports by estimating future electric technology cost and performance. Released in June 2018, the second report in the EFS series (“Scenarios of Electric Technology Adoption and Power Consumption for the United States”) is a deep dive into demand-side impacts. It looks at three scenarios (reference, medium, and high) that cover a broad range of potential adoption of end-use electric technologies and quantifies the impacts of electrification on the amount and shape of future electricity demand.

Images used with the permission of the U.S. Department of Energy’s National Renewable Energy Laboratory ELECTRIFICATION IN THE NEWS

The next step is to use the data and analyses from these first two reports to examine supply scenarios and impacts. The EFS team plans to issue reports on: • How the U.S. power grid will potentially evolve to accommodate the end uses described in the second report • Use of a demand-side grid model that assesses hourly electricity consumption to evaluate the detailed implications of widespread electrification A recent IEEE Power & Energy Magazine article provides more information on the EFS work. The research team includes EPRI, Evolved Energy Research, Lawrence Berkeley National Laboratory, Northern Arizona University, and Oak Ridge National Laboratory. EPRI wishes to thank NREL’s Trieu Mai for his contributions to this article. EPRI’s contributors to the EFS are: • Engineer/Scientist III Brandon Johnson, 865.218.8198 • Principal Technical Leader Baskar Vairamohan, 865.218.8189 • Sr. Program Manager Francisco de la Chesnaye, 202.293.6347 • Sr. Program Manager Allen Dennis, 865.218.8192 ELECTRIFICATION IN THE NEWS

Leading Articles • The Electric Drive Transportation Association (EDTA) updated its Electric Drive Market Snapshot in July 2018. More than 871,000 plug-in vehicles have been sold in the United States since 2010 market introduction, including more than 119,000 in the first six months of 2018–a 37% increase over the same period last year. • As described in several reports, including InsideEVs, Tesla surpassed a total of 200,000 electric vehicle sales in June 2018. This triggers the phase-out period of the $7500 federal tax credit. According to InsideEVs, General Motors is a close second with 184,000 EVs sold. • As Bloomberg reports, PA Consulting projects that six automakers will overtake Tesla in EV sales by 2021, including (in order) Daimler, BMW, Renault/Nissan/Mitsubishi, Volkswagen, Volvo, and Toyota.

Other News

• Bloomberg reports that French firm Akka Technologies’ envisions a “Link & Fly” system in which passengers board a train-like tube at a neighborhood station, which then becomes the fuselage of an aircraft for takeoff. • Public-private funded non-profit Catapult Energy Systems issued a report on “Preparing UK Electricity Networks for Electric Vehicles” with funding from the National Grid and EA Technology. • As the BBC reports, a survey from UK motoring group AA found that one-half of young people in the UK want to own an electric car, but only one-quarter of their parents have the same desire. • In a move to deploy high-capacity electric buses, the Foothill Transit Agency in Los Angeles County will introduce the first electric double-decker buses in the United States in 2019. At the other end of the transit spectrum, a series of trials is seeking to demonstrate the viability of small (less than 12-passenger) autonomous shuttles on fixed urban routes. • As Greentech Media reports, Advanced Energy Economy identified the top 10 utility regulation trends of 2018 so far, including planning for EVs. • As Reuters reports, utility lobby BDEW says that Germany has installed more EV chargers, but that it remains an unprofitable business.

UPCOMING EVENTS

• Register for Electrification 2018, August 20-23, 2018, in Long Beach, CA. Get Involved • Monday, Aug. 20: Commercial and Industrial Electric Transportation How can efficient electrification benefit you? Industry Advisory Meeting, in Long Beach, CA To learn more or get involved in one of EPRI’s • Tuesday, Aug. 28–Wednesday, Aug. 29: GridEd Short Course: Energy Storage Technologies, Applications and Integration, programs, contact Jimmy Herren (West), Birmingham, AL. Contact Amy Feser to register. Brian Fortenbery (East), or Kevin East • Wednesday, Oct. 10–Thursday, Oct. 11, 2018: GridFWD 2018, (International). Vancouver, British Columbia, Canada, hosted by Smart Grid Northwest, www.GridFWD.com • Did you know? EPRI U is now in session. EPRI U will offer the electricity sector’s technical and management professionals a growing curriculum of classroom, computer-based, video, and other training options to equip them for essential technical challenges and professional growth and development. To learn more, visit www.epri.com. EPRI RESOURCES

• Report: Developing a Framework for Integrated Energy Network Planning (IEN-P): Executive Summary (July 2018) • Report: Electric Vehicle Driving, Charging, and Load Shape Analysis: A Deep Dive Into Where, When, and How Much Salt River Project (SRP) Electric Vehicle Customers Charge (July 2018) • Technology Innovation: Electricity Reinventing Agriculture: Insights from EPRI’s Ongoing Research Into Indoor Agriculture (July 2018) • Technology Innovation: Quick Insights: Bitcoin Mining, Blockchain, and Electricity Consumption (April 2018) • Report: U.S. National Electrification Assessment report, a recorded webcast of the report release event, and presentations from the report release event (April 2018) For access to all of EPRI’s efficient electrification-related R&D materials and other information, visit our website. EPRI IN THE NEWS

• EPRI Engineer/Scientist Jamie Dunckley was quoted extensively in APPA’s Public Power Magazine about consumers’ electric vehicle charging decisions. • EPRI Technical Executive Ram Narayanamurthy was cited in an E&E News article about how Southern Company is working with Oak Ridge National Laboratory and EPRI to develop a high-tech, “smart” neighborhood in Alabama that will boost grid performance and help customers control their energy use. • EPRI Principal Technical Executive Tom Wilson was featured in a Daily Energy Insider article where he discussed electrification assessments from EPRI and the American Gas Association (AGA) at the summer policy summit of the National Association of Regulatory Utility Commissioners (NARUC). The main difference between the two reports, Wilson noted, was that the AGA study assumed that policy prohibited use of natural gas, while the EPRI study assumed consumer choice. • EPRI’s Electric Transportation Program Manager Dan Bowermaster comments about electric vehicle adoption and the importance of alternative fuels were featured in an article in The Fuse. The article also previewed EPRI’s Electrification 2018 Conference, which will focus on efficient electrification across industry, including transportation, in August in Long Beach, California. • Greentech Media posted an article about an EPRI report of the latest methods and metrics of hosting capacity analyses (HCA) in some key U.S. markets, including California, New York, and Minnesota. Each state has pushed utilities to undertake a version of an HCA, using different data inputs and methodologies. • The Lawrence Berkeley Laboratory announced that EPRI is among a consortium of national labs and nonprofit organizations that will engage stakeholders in demonstrating interoperability capabilities on how facilities with distributed energy resources, or DERs, integrate and interact with the electric grid. • As reported in RTO Insider, EPRI Principal Technical Executive Tom Wilson briefed state regulators at the National Association of Regulatory Utility Commissioners’ (NARUC) Summer Policy Summit about the results of EPRI’s U.S. National Electrification Assessment. Electrification was a recurrent theme at the conference of more than 800 participants. • EPRI’s Energy Storage Program Manager Ben Kaun’s comments to an Illinois Commerce Commission briefing were cited in a Forbes article about manufacturers of lithium-ion batteries removing valuable elements that make them worthwhile to recycle. Kaun said that the lack of recycling adds an end-of-life cost to lithium-ion batteries. EPRI assesses the end-of-life cost of batteries in a report published at the end of last year.

About EPRI’s Efficient Electrification Initiative “Electrification” describes the adoption of electric end-use technologies. EPRI’s Efficient Electrification Initiative explores electrification in the context of the global energy system, analyzing the customer value–lower cost, lower energy use, reduced emissions, improved indoor environment, and increased productivity–provided by advanced, end-use technologies that efficiently amplify the benefits of cleaner power generation portfolios. Coupling EPRI’s modeling capabilities with extensive research on end-use technologies and grid operations, the initiative also will assess interdependencies among increased adoption of efficient electric technologies, their potential to provide enhanced control and flexibility, and their impact on grid operations and planning.

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